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At Break-Even Point a Company Sells 1200 Widgets

Question 95

Essay

At break-even point a company sells 1200 widgets. Its selling price is $6 per widget variable cost is $2 per widget and its fixed cost is $4 per widget.
Instructions
If it sells 200 additional widgets determine the company's incremental profit.

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$6(1200) - $2(1200) - X = 0
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